WIPRO LTD-ADR (WIT) Stock Fundamental Analysis
NYSE:WIT - New York Stock Exchange, Inc. - US97651M1099 - ADR
WIT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the IT Services industry. WIT has an excellent financial health rating, but there are some minor concerns on its profitability. WIT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
WIT had positive earnings in the past year.
WIT had a positive operating cash flow in the past year.
Each year in the past 5 years WIT has been profitable.
WIT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 9.32%, WIT is doing good in the industry, outperforming 79.75% of the companies in the same industry.
WIT's Return On Equity of 14.35% is fine compared to the rest of the industry. WIT outperforms 75.95% of its industry peers.
WIT has a Return On Invested Capital of 10.17%. This is in the better half of the industry: WIT outperforms 75.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WIT is in line with the industry average of 9.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.32% | ||
| ROE | 14.35% | ||
| ROIC | 10.17% |
ROA(3y)10.19%
ROA(5y)11.09%
ROE(3y)15.94%
ROE(5y)16.96%
ROIC(3y)11.05%
ROIC(5y)11.82%
1.3 Margins
WIT's Profit Margin of 13.24% is amongst the best of the industry. WIT outperforms 89.87% of its industry peers.
WIT's Profit Margin has declined in the last couple of years.
WIT's Operating Margin of 16.28% is amongst the best of the industry. WIT outperforms 89.87% of its industry peers.
WIT's Operating Margin has been stable in the last couple of years.
WIT has a worse Gross Margin (30.15%) than 60.76% of its industry peers.
WIT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.28% | ||
| PM (TTM) | 13.24% | ||
| GM | 30.15% |
OM growth 3Y-8.03%
OM growth 5Y-1.33%
PM growth 3Y-10.95%
PM growth 5Y-4.35%
GM growth 3Y-2.19%
GM growth 5Y-0.07%
2. Health
2.1 Basic Checks
WIT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
WIT has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, WIT has more shares outstanding
The debt/assets ratio for WIT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.43 indicates that WIT is not in any danger for bankruptcy at the moment.
WIT has a Altman-Z score of 6.43. This is in the better half of the industry: WIT outperforms 79.75% of its industry peers.
WIT has a debt to FCF ratio of 1.13. This is a very positive value and a sign of high solvency as it would only need 1.13 years to pay back of all of its debts.
WIT has a better Debt to FCF ratio (1.13) than 77.22% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that WIT is not too dependend on debt financing.
WIT's Debt to Equity ratio of 0.23 is fine compared to the rest of the industry. WIT outperforms 62.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.13 | ||
| Altman-Z | 6.43 |
ROIC/WACC0.88
WACC11.59%
2.3 Liquidity
WIT has a Current Ratio of 2.69. This indicates that WIT is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of WIT (2.69) is better than 78.48% of its industry peers.
WIT has a Quick Ratio of 2.68. This indicates that WIT is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.68, WIT is doing good in the industry, outperforming 78.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.69 | ||
| Quick Ratio | 2.68 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.11% over the past year.
Measured over the past 5 years, WIT shows a small growth in Earnings Per Share. The EPS has been growing by 6.73% on average per year.
Looking at the last year, WIT shows a decrease in Revenue. The Revenue has decreased by -3.36% in the last year.
Measured over the past years, WIT shows a quite strong growth in Revenue. The Revenue has been growing by 8.91% on average per year.
EPS 1Y (TTM)5.11%
EPS 3Y2.82%
EPS 5Y6.73%
EPS Q2Q%21.43%
Revenue 1Y (TTM)-3.36%
Revenue growth 3Y13.16%
Revenue growth 5Y8.91%
Sales Q2Q%-0.95%
3.2 Future
WIT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.66% yearly.
WIT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.96% yearly.
EPS Next Y16.74%
EPS Next 2Y12.13%
EPS Next 3Y11.48%
EPS Next 5Y13.66%
Revenue Next Year-0.64%
Revenue Next 2Y2.68%
Revenue Next 3Y4.39%
Revenue Next 5Y5.96%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
WIT is valuated quite expensively with a Price/Earnings ratio of 26.46.
63.29% of the companies in the same industry are more expensive than WIT, based on the Price/Earnings ratio.
WIT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.96, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 22.81, the valuation of WIT can be described as rather expensive.
Based on the Price/Forward Earnings ratio, WIT is valued a bit cheaper than 65.82% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WIT to the average of the S&P500 Index (24.11), we can say WIT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.46 | ||
| Fwd PE | 22.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WIT is valued a bit cheaper than the industry average as 74.68% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, WIT is valued a bit cheaper than the industry average as 78.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.18 | ||
| EV/EBITDA | 12.15 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
WIT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.58
PEG (5Y)3.93
EPS Next 2Y12.13%
EPS Next 3Y11.48%
5. Dividend
5.1 Amount
With a yearly dividend of 0.17%, WIT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.91, WIT pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.17, WIT pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.17% |
5.2 History
The dividend of WIT decreases each year by -11.63%.
WIT has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-11.63%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
4.44% of the earnings are spent on dividend by WIT. This is a low number and sustainable payout ratio.
DP4.44%
EPS Next 2Y12.13%
EPS Next 3Y11.48%
WIPRO LTD-ADR
NYSE:WIT (1/17/2025, 8:04:00 PM)
After market: 3.47 +0.03 (+0.87%)3.44
+0.14 (+4.24%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners13.6%
Inst Owner Change-0.18%
Ins Owners62.43%
Ins Owner ChangeN/A
Market Cap35.97B
Analysts50.23
Price Target3.25 (-5.52%)
Short Float %N/A
Short Ratio15.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.17% |
Yearly Dividend0.49
Dividend Growth(5Y)-11.63%
DP4.44%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.49%
Min EPS beat(2)-1.47%
Max EPS beat(2)4.44%
EPS beat(4)1
Avg EPS beat(4)0.33%
Min EPS beat(4)-1.47%
Max EPS beat(4)4.44%
EPS beat(8)2
Avg EPS beat(8)-2.5%
EPS beat(12)2
Avg EPS beat(12)-4.29%
EPS beat(16)5
Avg EPS beat(16)-1.81%
Revenue beat(2)0
Avg Revenue beat(2)-3.38%
Min Revenue beat(2)-4.04%
Max Revenue beat(2)-2.72%
Revenue beat(4)0
Avg Revenue beat(4)-2.97%
Min Revenue beat(4)-4.04%
Max Revenue beat(4)-2.47%
Revenue beat(8)0
Avg Revenue beat(8)-3.39%
Revenue beat(12)0
Avg Revenue beat(12)-3.11%
Revenue beat(16)0
Avg Revenue beat(16)-2.66%
PT rev (1m)-49.61%
PT rev (3m)-46.31%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-1.41%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)1.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.96%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.46 | ||
| Fwd PE | 22.81 | ||
| P/S | 3.51 | ||
| P/FCF | 18.18 | ||
| P/OCF | 17.05 | ||
| P/B | 3.81 | ||
| P/tB | 6.61 | ||
| EV/EBITDA | 12.15 |
EPS(TTM)0.13
EY3.78%
EPS(NY)0.15
Fwd EY4.38%
FCF(TTM)0.19
FCFY5.5%
OCF(TTM)0.2
OCFY5.87%
SpS0.98
BVpS0.9
TBVpS0.52
PEG (NY)1.58
PEG (5Y)3.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.32% | ||
| ROE | 14.35% | ||
| ROCE | 14.74% | ||
| ROIC | 10.17% | ||
| ROICexc | 19.29% | ||
| ROICexgc | 49.35% | ||
| OM | 16.28% | ||
| PM (TTM) | 13.24% | ||
| GM | 30.15% | ||
| FCFM | 19.33% |
ROA(3y)10.19%
ROA(5y)11.09%
ROE(3y)15.94%
ROE(5y)16.96%
ROIC(3y)11.05%
ROIC(5y)11.82%
ROICexc(3y)18.61%
ROICexc(5y)21.89%
ROICexgc(3y)45.08%
ROICexgc(5y)47.31%
ROCE(3y)16%
ROCE(5y)17.06%
ROICexcg growth 3Y-5.51%
ROICexcg growth 5Y2.67%
ROICexc growth 3Y-14.36%
ROICexc growth 5Y-5.07%
OM growth 3Y-8.03%
OM growth 5Y-1.33%
PM growth 3Y-10.95%
PM growth 5Y-4.35%
GM growth 3Y-2.19%
GM growth 5Y-0.07%
F-Score6
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.13 | ||
| Debt/EBITDA | 1.04 | ||
| Cap/Depr | 34.04% | ||
| Cap/Sales | 1.28% | ||
| Interest Coverage | 14.75 | ||
| Cash Conversion | 102.85% | ||
| Profit Quality | 145.97% | ||
| Current Ratio | 2.69 | ||
| Quick Ratio | 2.68 | ||
| Altman-Z | 6.43 |
F-Score6
WACC11.59%
ROIC/WACC0.88
Cap/Depr(3y)46.82%
Cap/Depr(5y)64.77%
Cap/Sales(3y)1.79%
Cap/Sales(5y)2.47%
Profit Quality(3y)108.74%
Profit Quality(5y)104.82%
High Growth Momentum
Growth
EPS 1Y (TTM)5.11%
EPS 3Y2.82%
EPS 5Y6.73%
EPS Q2Q%21.43%
EPS Next Y16.74%
EPS Next 2Y12.13%
EPS Next 3Y11.48%
EPS Next 5Y13.66%
Revenue 1Y (TTM)-3.36%
Revenue growth 3Y13.16%
Revenue growth 5Y8.91%
Sales Q2Q%-0.95%
Revenue Next Year-0.64%
Revenue Next 2Y2.68%
Revenue Next 3Y4.39%
Revenue Next 5Y5.96%
EBIT growth 1Y1.12%
EBIT growth 3Y4.08%
EBIT growth 5Y7.46%
EBIT Next Year31.49%
EBIT Next 3Y15.15%
EBIT Next 5Y14.12%
FCF growth 1Y102.52%
FCF growth 3Y9%
FCF growth 5Y12.12%
OCF growth 1Y77.1%
OCF growth 3Y6.1%
OCF growth 5Y8.66%